BNP Paribas Real Estate publishes logistics market figures for the fourth quarter of 2022 - Berlin logistics market breaks the 1 million m² mark for the first time

Berlin, 31 January 2023 - The Berlin logistics market achieved an outstanding result last year with take-up of 1.02 million sqm. This means that the German capital has not only significantly surpassed its own record from 2021 (609,000 m²), but is also the first market in Germany to break the 1 million m² take-up barrier. This is the result of an analysis by BNP Paribas Real Estate.

"The new Tesla building in Grünheide played a significant role in this milestone, with 327,000 m² included in the result after final planning permission was granted in spring 2022. But even if the Giga Factory is excluded from the balance sheet, the figure is 697,000 m², which would still be a new record. This unique annual result was made possible by an unusual accumulation of major deals: "Around 20 deals in the segment above the 10,000 m² mark are clear evidence of the resilience of the Berlin market against the backdrop of the current difficult economic environment," says Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH.

Record figures for retail as well as production

Meanwhile, retail companies set a new record. At around 310,000 m², they exceeded their long-term average by 69%. A whole series of major deals contributed to this, including the largest registered rental agreement of the year: the rental of 50,000 m² by wholesaler Sonepar in Werder. Due to the high demand for modern space across all sectors and the significant increase in construction costs, the prime rent rose by 30 cents over the course of the year to €7.80/m².

Prospects

"The fact that the Berlin logistics market can look back on an absolute record year despite all the economic uncertainties reflects the unbroken high attractiveness of the German capital for many companies. Nonetheless, the emerging slight recession is likely to result in a somewhat muted market dynamic in the coming months. In addition, the record result was made possible in part by the fact that a not inconsiderable supply of speculatively constructed space was available on the market. However, most of these reserves have now been let. As construction activity is also lower than in previous years due to the rise in interest rates and construction costs, the supply of space is also more limited than in previous years. From today's perspective, a take-up of space slightly below the long-term average of 494,000 m² therefore appears to be the most realistic scenario for 2023," says Bastian Hafner, Head of Logistics & Industrial Advisory at BNP Paribas Real Estate GmbH.

Berlin logistics market breaks the 1 million m² mark for the first time | BNP Paribas Real Estate

Press contact:
Chantal Schaum - Tel: +49 (0)69-298 99-948, Mobile: +49 (0)174-903 85 77, chantal.schaum@bnpparibas.com
Viktoria Gomolka - Tel: +49 (0)69-298 99-946, Mobile: +49 (0)173-968 60 86, viktoria.gomolka@bnpparibas.com
Melanie Engel - Tel: +49 (0)40-348 48-443, Mobile: +49 (0)151-117 615 50, melanie.engel@bnpparibas.com

About BNP Paribas Real Estate

BNP Paribas Real Estate is a leading international property services provider that offers its clients comprehensive services in all phases of the property cycle: Transaction, Consulting, Valuation, Property Management, Investment Management and Property Development. With 4,500 employees, the company supports owners, tenants, investors and the public sector in their projects thanks to local expertise in 30 countries (own locations and alliance partners) in Europe, the Middle East and Asia. BNP Paribas Real Estate is part of the BNP Paribas Group, a leading global financial services provider.

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About BNP Paribas in Germany

BNP Paribas is a leading European bank with an international reach. The BNP Paribas Group has been active in Germany since 1947 and has successfully positioned itself in the market with 12 business units. Private, corporate and institutional clients are served by around 6,000 employees nationwide in all relevant economic regions. www.bnpparibas.de